WASHINGTON – Inflation at the wholesale level jumped in April by the largest amount in three months, fueled by rising prices of food and energy.
The Labor Department says its producer price index, which measures inflation before it reaches the consumer, rose 0.5 percent in April. That is a sharp rebound following a 0.1 percent decline in March. It was the largest gain since similar 0.5 percent rise in January.
Energy prices rose 0.8 percent in April, while food costs were up 0.9 percent.
Overall inflation at the wholesale level was up 2.5 percent over the past 12 months, the largest 12-month gain in five years. Core inflation at the wholesale level, which excludes food, energy and trade services, was up 0.7 percent in April and 2.1 percent over 12 months.